Posts Tagged ‘Accounting’
What is Depreciation and How Does It Affect My Taxes?
You’ve likely heard the terms depreciate and depreciation when it comes to tax matters. But do you really understand the basics of these concepts and how they apply to your taxes? Depreciation Defined In layman’s terms, the basic concept of depreciation revolves around an income tax deduction. This IRS write-off allows a taxpayer to recover the cost of certain…
Read MoreCommon and Costly Bookkeeping Mistakes
Tax Question What are common and costly mistakes made in corporate bookkeeping during the year and how can these be avoided? Facts There are many simple checks and cross checks that can be done monthly to help find and correct common and costly bookkeeping mistakes. Discussion Bank accounts, Accounts Receivable, Accounts Payable, and Sales Tax…
Read MoreFiguring Out the Best Corporate Year End Date
The year end date is important as it identifies the end of a corporation’s business year and can have an impact on tax planning. It has to be determined for a corporation’s first tax filing and is typically the last day of a month. So what year end date should you choose? Discussion There are…
Read MoreEverything You Need to Know About Expense Reimbursement
Travel, dining, mileage, office supplies and other costs that employees incur as part of their jobs are all considered business expenses. That seems straightforward enough. What’s not so clear-cut is the process of reimbursing business expenses. If you’re in the process of establishing or revamping your company expense practices and procedures, the following is a…
Read MoreBusiness Plan Financials: Cash vs. Accrual Bookkeeping
I hate the buzzwords and general environment related to accounting and financial terms. No wonder business owners shy away from it. “Accrual accounting” sounds like something you do with thumb screws, rack, and chains. But—damn—it matters. If you run a business, you have huge incentive to understand this stuff. And there is some good news…
Read MoreRetirement Plan Options for Small Businesses
According to the US Small Business Administration, small businesses employ half of all private sector employees in the United States. However, a majority of small businesses do not offer their workers retirement savings benefits. If you’re like many other small business owners in the United States, you may be considering the various retirement plan options available…
Read More3 Things You Need to Remember About Profits
Are you a small business owner? Are you looking to start your own business? The politicians can misunderstand profits, and so can the general public, but you’d better not. Profits are good, not bad; but your business runs on cash, not just profits. 1. Profits are an accounting concept, not actual money. Yes, they lead…
Read MoreA CPA’s Real Job
CPAs think their important job is to complete and file clients’ taxes during tax season. If you’re a CPA or bookkeeper, the most important job is to help your clients build profitability, cash flow and terminal value. Most small businesses never get there. They sell a new client, do some work, get paid for it…
Read More4 Warning Signs That Your Small Business Needs an Accountant
Sooner or later, your business will need to take that all-important step from financial self-management to bringing in some expert help. Many business owners choose to do their own accounts for as long as possible, and this can work out just fine. However, poorly managed finances can lead to some nasty surprises, so it’s important…
Read MoreSpecial Tax Concerns for Cash Businesses
Many small businesses do some or all of their transactions in cash. This raises some special issues and concerns. Technically, being paid in cash doesn’t make a difference in terms of income taxes; cash transactions are reported as any transactions by check, credit card, or electronic transfer. However, there are some unique issues that those…
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